survey on the impact of covid-19 on canadian smes · 2020-05-19 · bdc –impact of covid-19 on...

Survey on the impact of COVID-19 on Canadian SMEsTracking survey, wave 6

Research and Market Intelligence at BDC

As of May 13, 2020

BDC – Impact of COVID-19 on businesses, May 11-13, 2020 2

Methodology

01Key highlights

02Respondent profile

04

Detailed results

03

Table of contents

Methodology01.


Methodology

▪ Survey methodology: Online tracking survey.

▪ Respondent profile: Business owners and business decision-makers from the BDC ViewPoints panel.

▪ Survey dates:

Wave 1: March 11-13, 2020

Wave 2: March 14-18, 2020

Wave 3: March 30 to April 1, 2020

Wave 4: April 14-16, 2020

Wave 5: April 27-29, 2020

Wave 6: May 11-13, 2020

▪ Margin of error: For a probability sample of 619 respondents (wave 6), the maximum margin of error is ± 3.9

percentage points, 19 times out of 20. However, as this survey is based on a non-probability sample, this

information is provided for reference only.

▪ Data processing and analysis were performed by the BDC Research and Market Intelligence team.

▪ Weighting factors: Results were weighted by region and number of employees to be representative of the

Canadian SME population.

▪ Note: Since our response rates are beginning to decline, we have made the decision to leave the survey in field

for a longer period of time and to reduce its frequency. The next data collection will take place in three weeks

(starting June 2nd) and will be conducted over a full week rather than three days. Therefore, our next results will

be published at the end of the week of June 8th.

Key highlights02.


COVID-19 survey highlights, May 11-13, 2020

Very worried entrepreneurs: % continues to decrease

SMEs still feel strongly the impact of COVID-19

36%

57% 52%

Theirbusiness

Canadianeconomy

Worldwideeconomy

81% (+2pts)

Say that the negative impact on

their business is somewhat or very

important

87% (-2pts)Impact is negative:

Top lessons learned

Note: Figures in parentheses indicate the fluctuation with the previous wave of the survey (April 27 to 29), when available.

(-2pts)

(-6pts)

(+1pt)

Most impacted SMEs had to suspend their activities

21%

49%

30%

Completely In part Did not stop

Resuming activities is not as easy as feeling ready to do so

67%say that having enough demand to sell their products/services is or will be challenging when resuming operations.

Top plans for the future

32%Broaden our

offering

36%Reduce our

expenses

30%Sell our

products or

services online

76%Are ready

50%It will be easy

44%It is important to

have an

emergency fund

57%It is important to

have good cash

flow

29%Expenses must

be controlled

(+8pts)(-3pts)

(-5pts)

Main results03.


A downward trend continues among those worried about their own business, although not significantly this time. Other results remain stable.

Q.0 How worried are you about the impact of COVID-19 on ...?Opinions were expressed using a scale from 0 to 10, where 0 means "Not worried at all" and 10 means "Extremely worried".

Base: All qualified respondents (n wave 6 = 613-619). Results are presented in terms of those worried with the situation (scores of 7+ out of 10). Due to rounding, totals may not equal to 100%. The average score (wave 6) was calculated by excluding those who didn’t know or preferred not to answer, whereas the scale includes these respondents. Arrows accompanying results indicate statistically significant differences between the current and the last wave.

79%

83%

79%

72%

69%

89%

90%88%

87% 87%91%

88%

84%85%

84%

Your business

The Canadian economy

The worldwide economy

Wave 203/14-03/18

Wave 303/30-04/01

Wave 404/14-04/16

Significantly proportion of respondents

worried about their business among:

Businesses in Atlantic (92%)

Businesses with no or low growth (77%)

Retail sector (80%)

Their business: 7.3

CDN economy: 8.4

WW economy: 8.2

Average out of 10

Wave 504/27-04/29

Wave 605/11-05/13


Base: All qualified respondents (n wave 6 = 619). Due to rounding, total may not equal to 100%. Arrows accompanying results indicate statistically significant differences between the current and the last wave. Please note that to simplify the presentation, we have included in the calculations but excluded from the presentation those who did not know.

Q.1 Have you felt the impact of the coronavirus on your business so far?

The negative impact on businesses is slightly declining. However, a large majority of SMEs remain negatively affected.

Wave 203/14-03/18

Wave 303/30-04/01

Wave 404/14-04/16

Wave 103/11-03/13

39%

73%

90% 90% 89% 87%

2% 1%

3% 3% 4% 5%

56%

25%

6% 6% 7% 7%

Negative impact

Positive impact

No impact so far

Negative impact

Significantly scores among: Businesses with no or low growth (90%)

Those in large urban centres (90%)

Wave 504/27-04/29

Wave 605/11-05/13


The magnitude of the impact is stable. The proportion of entrepreneurs who tell us they had to suspend their activities was significantly lower in this survey wave.

Base: Those who saw a negative impact (n wave 6 = 538) Q.2: Results are presented in terms of those who gave a score of of 7+ out of 10. The average score (wave 6) was calculated by excluding those who didn’t know or preferred not to answer, whereas the scale includes these respondents. Arrows accompanying results indicate statistically significant differences between the current and the last wave. Q2b was added to the 5th wave of the survey.

Q.2 To what extent has your business been impacted

negatively? (Scale from 1 to 10)

47%

66%

84% 82%79% 81%

Average: 8.0

03/14-03/18

03/30-04/01

04/14-04/16

03/11-03/13

04/27-04/29

Q.2b Did your company have to suspend its activities

completely or in part in response to the COVID-19 crisis?

22%30%

54%49%

24% 21%

04/27-04/29

05/11-05/13

No Yes, in part Yes, completely

A significantly greater proportion of businesses in Quebec (81%) had to suspend their operations.

The same is true for businesses in construction (85%) and active abroad (77%).

Total YES:

78%

Total YES:

70%

05/11-05/13


Over two thirds of SMEs have not been able to resume their activities, but a majority of these say they are ready to do so, down slightly from the previous wave.

Base: Q2c = Those who had to suspend activities in response to the COVID-19 crisis (n wave 6 = 374) Q.2d = Those who have not yet resumed their operations normally (n wave 6 = 238). Q2d was added to the 5th wave of the survey and Q2c was modified in the 6th survey wave. Arrows accompanying results indicate statistically significant differences between the current and the last wave.

Q.2c Have you been able to resume your operations since

they were suspended in whole or in part?

Q.2d How ready do you feel to resume operations once it is

possible for you to do so?

47%

29%

19%

5%

52%

29%

13%

6%

Totally ready (9-10 out of 10)

Somewhat ready (7-8 out of 10)

Somwehat not ready (4-6 out of 10)

Not at all ready (0-3 out of 10) Wave 6 (May 11 to 13)

Wave 5 (Apr 27 to 29)

Total READY:

76% w6

81% w5

32%

22%

46%

YesNot yet but we will be authorized to do so soonNot yet and we don’t know when we’ll be able to

Total NO:

68%

Some profiles are significantly more likely to say they are ready to restart, namely growing businesses (85%)

as well as those in the manufacturing sector (91%).


Resuming activities is deemed easy by half of the respondents, but nearly one in five believe it is or will be very difficult for them to re-start.

Base: Those who have resumed operations as well as those who have not yet resumed them (n=374). Q2f was added to the 6 th wave of the survey.

Q.2f How easy was it or will it be for you to resume operations?

Ontario respondents are more optimistic than the others. A significantly greater proportion (24%)

said it was or will be “very easy” (scores of 9-10 out of 10) for them to resume operations.

17%

33%

31%

17%

1%

Very easy (9-10 out of 10)

Somewhat easy (7-8 out of 10)

Somwehat difficult (4-6 out of 10)

Very difficult (0-3 out of 10)

Don't know

Total EASY:

50%


Having enough demand, paying expenses and respecting norms of social distancing are the most problematic challenges for SMEs.

Q.2g What was or will be a challenge when resuming activities?

Base: Those who had to suspend activities in response to the COVID-19 crisis (n=377). This question was converted into a multi-choice in the 6th wave of the survey. Multiple mentions were allowed, therefore, total may exceed 100%.

67%

60%

53%

38%

34%

34%

33%

32%

20%

17%

9%

11%

1%

Having enough demand to sell our products and services

Paying expenses

Complying with social distancing rules

Reassuring and motivating employees

Complying with health regulations

Recovering accounts receivable

Understanding the government programs available

Covering the costs of new health and distancing norms

Restoring supply sources

Managing inventories efficiently

Implementing cybersecurity measures

Other

None of the above

Smaller businesses are more worried than others. A greater proportion of businesses with less than five

employees are worried about having enough demand (72%) and a larger proportion of businesses with less than

$2M of revenues are worried about paying expenses (65%).


For now, a minority say they had or will have to increase their prices because of COVID-19. Among these, the average increase is high, at 12%.

Base: Q2h = All respondents (n=613). Q.2i = Those who increased or plan to increase prices (n=81). Extreme values and outliers were removed from the sample to calculate the average. These two questions were added to the 6th survey wave.

Q.2h Did you or will you have to increase the price of your

products or services because of COVID-19?

Q.2I By how much did you or will you have to increase prices,

on average?

Average:

12%

17%

51%

32%

Yes No Don't know yet

Ontario businesses (22%), those with revenues of $10M+ (26%), with 50-99 employees (35%), or in the

construction (31%) and wholesale trade (37%) were more likely to say they had or would increase their prices.

Yes

21%

12%

30%

25%

12%

20% or more

15% to <20%

10% to <15%

5% to <10%

Less than 5%


53%

48%

47%

43%

42%

40%

40%

27%

21%

20%

18%

51%

47%

40%

39%

36%

45%

37%

29%

21%

24%

17%

51%

58%

44%

42%

40%

55%

52%

24%

18%

29%

14%

Ability to work on new projects

Ability to keep employees on payroll

Ability to deliver your products or services

Ability to develop new markets

Postponement of planned investments

Ability to repay your debts

Ability to keep the business open

Ability to source from your suppliers

Ability to meet the demand for yourproducts

Ability to borrow money

Lack of personnel

The ability to work on new projects, to keep employees on payroll and to deliver products or services affect SMEs the most at this time.

Q.6 What specifically is or will be affected in your company as a result of the coronavirus?

Base: Those who are impacted negatively or feel they will be impacted in the next 2 months (n wave 6 = 538). Multiple mentions allowed. Arrows accompanying results indicate statistically significant differences between the current and the last wave. Please note that to simplify the presentation, we only presented the last three waves of results for this question and answers mentioned by 5%+ respondents.

Ability to work on new projects

Significantly results among: Professional services (63%), IT (76%) and

construction (75%) sectors

Keep employees on payroll

Significantly results among: Retail (64%) and accommodation & food

services (80%) sectors

Businesses active abroad (57%)

Deliver products/services

Significantly results among: Businesses in Atlantic (68%)

Wave 6 (May 11 to 13)




The most frequently mentioned lessons learned are related to SMEs' finances: having a good cash flow, an emergency fund and controlling expenses.

Q.7b What are the most important lessons you have learned from this crisis?

Base: All respondents (n=619). This question was converted into a multi-choice in the 6th wave of the survey. Multiple mentions were allowed, therefore, total may exceed 100%.

57%

44%

29%

22%

22%

20%

15%

14%

12%

10%

9%

3%

It is important to have good cash flow

It is important to have an emergency fund

Expenses must be controlled

Selling online is a must

Having a business continuity plan is a necessity

We must keep ahead technologically

We must broaden our offering

A telework infrastructure is a must

It is important to diversify supply sources

It is important to source locally

Other

We did very well, no lessons learned

Businesses in the construction sector (71%) are more likely to mention the importance of good cash flow.

Small (48%) and rural (61%) businesses are more likely to mention the importance of the emergency fund.


Entrepreneurs plan to change a variety of things in the future; reducing expenses and broadening offeringstand out slightly. Only 1 in 10 won’t change anything.

Q.7c What do you plan to change in your business when things return to normal?

Base: All respondents (n=619). This question was converted into a multi-choice in the 6th wave of the survey. Multiple mentions were allowed, therefore, total may exceed 100%.

36%

32%

30%

29%

29%

28%

22%

17%

14%

12%

10%

5%

8%

9%

Reduce our expenses

Broaden our offering

Sell our products/services online

Streamline operations

Invest more in technology

Put in place a business continuity / emergency plan

Offer remote services

Encourage telework, particularly when employees feel sick

Reduce our number of employees

Use more local suppliers

Increase the number of suppliers we use

Produce more locally

Other

We won’t change anything

A greater proportion of businesses in Atlantic (58%), with no or low growth (40%), in the retail (51%),

construction (60%) or accommodation & food services (68%) sectors and those active abroad (42%)

are planning to reduce their expenses when things return to normal.

Respondent profileSurvey wave 6

04.


15%

B.C. and North

22%Prairies

5%Atlantic

37%Ontario

20%Quebec

Region

Base: All qualified respondents (n=619). Due to rounding, total may not equal 100%.


Number of employees

Base: All qualified respondents (n=1,061). Due to rounding, total may not equal 100%.

55%

30%

9%

3%

2%

1 to 4 employees

5 to 19 employees

20 to 49 employees

50 to 99 employees

100 employees or more

Number of employees


Sector of activity


26%

15%

12%

8%

7%

5%

4%

4%

3%

3%

2%

2%

2%

8%

Professional, scientific & technicalservices, finance and insurance

Manufacturing

Retail

Technology, information and culturalindustries

Construction

Wholesale trade

Other services, private sector

Public services

Accommodation and food services

Real estate, rental and leasing

Primary sectors

Transportation and warehousing

Arts, entertainment and recreation

Other

Sector of activity


Business annual sales


Annual sales

25%

15%

14%

17%

16%

12%

Up to $249,999

$250,000 to $499,999

$500,000 to $999,999

$1 million to $1,999,999

$2 million to $4,999,999

$5 million and more


Business annual sales growth

Base: All qualified respondents (n=1,061). Due to rounding, total may not equal 100%.

Annual sales growth

30%

25%

15%

15%

14%

1%

Negative or 0%

From 0.1% to <5% per year

From 5% to <10% per year

From 10% to <20% per year

20% or more per year

The company did not exist last year

Thank you.

Research and Market IntelligenceFor more info, please contact us at

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survey on the impact of covid-19 on canadian smes · 2020-05-19 · bdc –impact of covid-19 on...

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